1-1 AN ACT
1-2 relating to the appraisal and ad valorem taxation of retail
1-3 manufactured housing inventory.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 23.127(a), (e), and (h), Tax Code, are
1-6 amended to read as follows:
1-7 (a) In this section:
1-8 (1) "Chief appraiser" means the chief appraiser for
1-9 the appraisal district in which a retailer's retail manufactured
1-10 housing inventory is located.
1-11 (2) "Collector" means the county tax
1-12 assessor-collector for the county in which a retailer's retail
1-13 manufactured housing inventory is located.
1-14 (3) "Declaration" means a retail manufactured housing
1-15 inventory declaration form adopted by the comptroller under this
1-16 section.
1-17 (4) "Department" means the Texas Department of Housing
1-18 and Community Affairs.
1-19 (5) "HUD-code manufactured ["Manufactured] home" has
1-20 [and "manufactured housing" have] the meaning assigned [those
1-21 terms] by Section 3, [the] Texas Manufactured Housing Standards Act
1-22 (Article 5221f, Vernon's Texas Civil Statutes).
1-23 (6) "Manufactured housing" means:
1-24 (A) a HUD-code manufactured home as it would
2-1 customarily be held by a retailer in the normal course of business
2-2 in a retail manufactured housing inventory; or
2-3 (B) a mobile home as it would customarily be
2-4 held by a retailer in the normal course of business in a retail
2-5 manufactured housing inventory.
2-6 (7) "Mobile home" has the meaning assigned by Section
2-7 3, Texas Manufactured Housing Standards Act (Article 5221f,
2-8 Vernon's Texas Civil Statutes).
2-9 (8) [(6)] "Owner" means a retailer who owes current
2-10 year inventory taxes imposed on a retailer's retail manufactured
2-11 housing inventory.
2-12 (9) [(7)] "Retail manufactured housing inventory"
2-13 means all units of manufactured housing [homes] that a retailer
2-14 holds for sale at retail.
2-15 (10) [(8)] "Retailer" has the meaning assigned [that
2-16 term] by Section 3, [the] Texas Manufactured Housing Standards Act
2-17 (Article 5221f, Vernon's Texas Civil Statutes).
2-18 (11) [(9)] "Retailer-financed sale" means the sale at
2-19 retail of a unit of manufactured housing [home] in which the
2-20 retailer finances the purchase of the unit of manufactured housing
2-21 [home], is the sole lender in the transaction, and retains
2-22 exclusively the right to enforce the terms of the agreement that
2-23 evidences the sale.
2-24 (12) [(10)] "Sales price" means the total amount of
2-25 money paid or to be paid to a retailer for the purchase of a unit
2-26 of manufactured housing [home], excluding any amount paid for the
2-27 installation of the unit [home].
3-1 (13) [(11)] "Subsequent sale" means a
3-2 retailer-financed sale of a unit of manufactured housing [home]
3-3 that, at the time of the sale, has been the subject of a
3-4 retailer-financed sale from the same retail manufactured housing
3-5 inventory in the same calendar year.
3-6 (14) [(12)] "Total annual sales" means the total of
3-7 the sales price for each sale from a retail manufactured housing
3-8 inventory in a 12-month period.
3-9 (e) A retailer is presumed to be an owner of a retail
3-10 manufactured housing inventory on January 1 if, in the 12-month
3-11 period ending on December 31 of the immediately preceding year, the
3-12 retailer sold a unit of manufactured housing [home] to a person
3-13 other than a retailer. The presumption created by this subsection
3-14 is not rebutted by the fact that a retailer does not have any units
3-15 of manufactured housing [homes] physically on hand for sale from
3-16 the retail manufactured housing inventory on January 1.
3-17 (h) If a retailer fails to file a declaration as required by
3-18 Subsection (f), or if, on the declaration required by Subsection
3-19 (f) a retailer reports the sale of fewer than two units of
3-20 manufactured housing [homes] in the preceding year, the chief
3-21 appraiser shall report that fact to the department.
3-22 SECTION 2. Sections 23.128(a), (b), (e), (f), and (g), Tax
3-23 Code, are amended to read as follows:
3-24 (a) In this section:
3-25 (1) "Aggregate tax rate" means the combined tax rates
3-26 of all appropriate taxing units authorized by law to impose
3-27 property taxes on a retail manufactured housing inventory.
4-1 (2) "Appropriate taxing unit" means a taxing unit,
4-2 including the county, authorized by law to impose property taxes on
4-3 a retail manufactured housing inventory.
4-4 (3) "Chief appraiser," "collector," "declaration,"
4-5 ["manufactured home,"] "manufactured housing," "owner," "retail
4-6 manufactured housing inventory," "retailer," "sales price,"
4-7 "subsequent sale," and "total annual sales" have the meanings
4-8 assigned [those terms] by Section 23.127.
4-9 (4) "Statement" means the retail manufactured housing
4-10 inventory tax statement filed on a form adopted by the comptroller
4-11 under this section.
4-12 (5) "Unit property tax factor" means a number equal to
4-13 one-twelfth of the preceding year's aggregate ad valorem tax rate
4-14 at the location at which a retail manufactured housing inventory is
4-15 located on January 1 of the current year.
4-16 (b) Except for a unit of manufactured housing [home] sold to
4-17 a retailer or a unit of manufactured housing [home] that is the
4-18 subject of a subsequent sale, a retailer or a person who has agreed
4-19 by contract to pay the retailer's current year property taxes
4-20 imposed on the retailer's manufactured housing inventory shall
4-21 assign a unit property tax to each unit of manufactured housing
4-22 [home] sold from a retail manufactured housing inventory. The unit
4-23 property tax of each unit of manufactured housing [home] is
4-24 determined by multiplying the sales price of the unit [manufactured
4-25 home] by the unit property tax factor. On or before the 10th day
4-26 of each month the retailer shall, together with the statement filed
4-27 by the retailer as provided by this section, deposit with the
5-1 collector an amount equal to the total of the unit property tax
5-2 assigned to all units of manufactured housing [homes] sold from the
5-3 retail manufactured housing inventory in the preceding month to
5-4 which a unit property tax was assigned. The collector shall
5-5 deposit the money to the credit of the retailer's escrow account
5-6 for prepayment of property taxes as provided by this section. An
5-7 escrow account required by this section is used to pay property
5-8 taxes imposed on the retail manufactured housing inventory, and the
5-9 retailer shall fund the escrow account as provided by this
5-10 subsection.
5-11 (e) The comptroller by rule shall adopt a form entitled
5-12 "Retail Manufactured Housing Inventory Tax Statement." A retailer
5-13 shall complete the form with respect to each unit of manufactured
5-14 housing [home] sold. A retailer may not use another form for that
5-15 purpose. The statement shall include:
5-16 (1) a description of the unit of manufactured housing
5-17 [home] sold, including any unique identification or serial number
5-18 affixed to the unit [manufactured home] by the manufacturer;
5-19 (2) the sales price of the unit of manufactured
5-20 housing [home];
5-21 (3) any unit property tax of the unit of manufactured
5-22 housing [home];
5-23 (4) the reason a unit property tax is not assigned if
5-24 that is the case; and
5-25 (5) any other information the comptroller considers
5-26 appropriate.
5-27 (f) On or before the 10th day of each month, a retailer
6-1 shall file with the collector the statement covering the sale of
6-2 each unit of manufactured housing [home] sold by the retailer in
6-3 the preceding month. A retailer shall file a copy of the statement
6-4 with the chief appraiser and retain documentation relating to the
6-5 disposition of each unit of manufactured housing [home] sold. A
6-6 chief appraiser or collector may examine documents held by a
6-7 retailer as required by this subsection in the same manner, and
6-8 subject to the same conditions, as in Section 23.127(g).
6-9 (g) Subsection (f) applies to a retailer regardless of
6-10 whether the retailer owes retail manufactured housing inventory tax
6-11 for the current year. A retailer who does not owe any retail
6-12 manufactured housing inventory tax for the current year because the
6-13 retailer was not in business on January 1 may not assign a unit
6-14 property tax to a unit of manufactured housing [home] sold by the
6-15 retailer or remit money with the statement unless under the terms
6-16 of a contract as provided by Subsection (k).
6-17 SECTION 3. Sections 23.128(h) and (i), Tax Code, are amended
6-18 to read as follows:
6-19 (h) An appropriate taxing unit shall, on its tax bill
6-20 prepared for the owner of a retail manufactured housing inventory,
6-21 separately itemize the taxes imposed on the retail manufactured
6-22 housing inventory. When the tax bill is prepared for a retail
6-23 manufactured housing inventory, the assessor for the taxing unit,
6-24 or an entity, if any, other than the collector, that collects taxes
6-25 on behalf of the taxing unit, shall provide the collector a true
6-26 and correct copy of the tax bill sent to the owner, including taxes
6-27 imposed on the retail manufactured housing inventory. The
7-1 collector shall apply the money in the owner's escrow account to
7-2 the taxes imposed and deliver a tax receipt to the owner. The
7-3 collector shall apply the amount to each appropriate taxing unit in
7-4 proportion to the amount of taxes imposed, and the assessor of each
7-5 taxing unit shall apply the money received from the collector to
7-6 the taxes owed by the owner. No penalties or interest shall be
7-7 assessed against an owner for property taxes which the owner has
7-8 previously paid but which are not delivered to the appropriate
7-9 taxing unit before the date on which such taxes become delinquent.
7-10 (i) If the amount in the escrow account is not sufficient to
7-11 pay the taxes in full, the collector shall apply the money to the
7-12 taxes and deliver to the owner a tax receipt for the partial
7-13 payment and a tax bill for the amount of the deficiency together
7-14 with a statement that the owner must remit to the collector the
7-15 balance of the total tax due; however, no penalty or interest shall
7-16 be assessed against an owner for that portion of the property taxes
7-17 which represents the amount of the partial payment if the amount of
7-18 the deficiency is not paid before the date the deficiency is
7-19 delinquent.
7-20 SECTION 4. Sections 1 and 2 of this Act take effect January
7-21 1, 2000, and apply only to an ad valorem tax year that begins on or
7-22 after that date. Section 3 of this Act takes effect September 1,
7-23 1999.
7-24 SECTION 5. The importance of this legislation and the
7-25 crowded condition of the calendars in both houses create an
7-26 emergency and an imperative public necessity that the
7-27 constitutional rule requiring bills to be read on three several
8-1 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3197 was passed by the House on April
30, 1999, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 3197 on May 26, 1999, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3197 was passed by the Senate, with
amendments, on May 24, 1999, by the following vote: Yeas 30, Nays
0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor